These days it’s difficult to escape the heavy-handed and negative media reports regarding our economy, consumer confidence and the recession. We constantly hear off-putting reports and statistics on unemployment, real estate, the stock market and a myriad of other social and economic issues.
The advertising industry has also seen its fair share of negative press. We’ve witnessed media conglomerates collapse, 65-year old magazines dissolve and national mega-newspaper corporations suffer. However, in this massive sea of negativity, it seems as though things might be headed in the right direction.
According to data recently published by Kantar Media, total advertising expenditures in the first quarter of 2010 rose 5.1% from a year ago and finished the period at $31.3 billion, marking the first increase in quarterly ad spending since the first quarter of 2008 and the largest gain since the first quarter of 2006, as the ad market finally experienced a long-awaited rebound.
The study tracked 19 types of media —13 of which increased from this time last year. Network TV, Cable TV and Spot TV all increased significantly (11.6%, 8.2% and 22.0% respectively), as well as Internet (display ads up 5%) and Local, National and Network Radio (4.6%, 19.0% and 3.0%). As a whole, print media recorded a slight decline in 2010 (an average of -3.4%) except in Sunday Magazines (13.7%) and National Newspapers (9.1%).
While we continue to follow the ups and downs of the economy, we can be encouraged by studies like this that provide us with an indication that the ad market is moving forward. With the political season approaching this fall, we anticipate these numbers to increase further as inventory tightens and media costs rise. As I’ve recently prepared media plans for several clients, I’ve noticed a renewed confidence in our vendors that I haven’t seen for some time. I think we’ve seen the bottom of the media market and the only place to go from here is up.